So, here we are. The first quarterly report without Warren Buffett's name at the top. On Saturday, Berkshire Hathaway Inc. (BRK.A) and Berkshire Hathaway (BRK.B) released their fourth-quarter and full-year 2025 results, and all eyes were on the new guy in the corner office: CEO Greg Abel.

The numbers themselves tell a story of moderation. Net earnings attributable to shareholders for the full year slipped to $66,968 million from $88,995 million in 2024. For the fourth quarter, net earnings were $19,199 million, just a hair below the $19,694 million from a year earlier.

But the more telling figure for how the actual businesses are running is operating earnings. That's the money made from selling insurance, running railroads, and manufacturing things, before you account for the wild swings of the stock market. That number fell to $10,200 million in Q4 from $14,527 million a year ago—a drop of nearly 25%. For the full year, operating earnings eased to $44,486 million from $47,437 million in 2024.

Investors were also watching revenue, which came in slightly below expectations. The company has a habit of beating estimates, so this quarter's results put that streak to the test even as markets churn.

The Greg Abel Era Officially Begins

The Saturday release wasn't just a data dump; it was a symbolic handoff. The annual shareholder letter is arriving without Buffett's folksy signature for the first time in decades. The big question on everyone's mind: What does Greg Abel plan to do with all that cash?

Berkshire is sitting on a mountain of over $300 billion. Under Buffett, the playbook was famously patient—waiting for the "elephant-sized" acquisition or buying back its own stock when the price was right. Will Abel follow the same script? The market is watching for hints about new deals, fresh equity purchases, or even a shift in dividend policy.

Portfolio moves are part of that puzzle. A recent filing signaled plans to sell Berkshire's stake in Kraft Heinz (KHC). And everyone knows Berkshire has been trimming its massive Apple Inc. (AAPL) position in recent quarters. Investors are looking for any indication from Abel on whether that sell-down continues.

Then there are the newer bets. Positions in companies like UnitedHealth Group (UNH), Alphabet Inc. (GOOGL), and The New York Times (NYT) have shown up in the lineup. Are these Abel's picks? Are they meant to be long-term holdings like Apple became, or just tactical plays? Abel's first letter may shed light on the sourcing and strategy behind these moves.

When the Stock Market Does the Talking

Here's where the accounting gets fun. Berkshire's headline net income includes investment gains and losses, which can make the numbers look wildly different from quarter to quarter based on what the market does.

In 2025, the company booked $30,737 million in investment gains, down from $41,558 million in 2024. It also took other-than-temporary impairment charges totaling $8,255 million for the year, mostly related to its Kraft Heinz and Occidental positions. In the fourth quarter alone, those impairment losses were $4,495 million.

Berkshire broke it down further: unrealized gains (paper profits on stocks it still owns) added $9.6 billion in the quarter and $12.9 billion for the year. Back in 2024, the company had a full-year unrealized *loss* of $38.1 billion. Realized gains after tax—actual cash from selling investments—were $3.9 billion in Q4 and $17.8 billion for 2025, compared to a whopping $79.6 billion in 2024.

The company itself warns that these quarter-to-quarter swings can distort the per-share figures if you're not paying attention to the accounting mechanics. Net earnings per average equivalent Class A share were $46,563 for 2025 versus $61,900 in 2024. For the more affordable Class B shares, it was $31.04 versus $41.27.

Adding some context to the leadership change, Berkshire's stock gained 11.4% in 2025. That's not bad, but it trailed the SPDR S&P 500 ETF Trust (SPY), which rose 16.6%. Of Berkshire's top 10 stock holdings at year-end, only American Express (AXP), Bank of America (BAC), and Alphabet managed to outpace the S&P 500 last year.

The Engine Room: Insurance Cools From a Hot 2024

Historically, insurance has been Berkshire's profit engine. Last year's third quarter was a barnburner, with underwriting profit soaring 216% to $2.369 billion. That kind of performance sets a high bar.

This quarter, that engine cooled off a bit. Insurance-underwriting earnings were $1,561 million in Q4, down from $3,409 million in the fourth quarter of 2024. For the full year, underwriting profit was $7,258 million versus $9,020 million the prior year.

Insurance-investment income also stepped down, coming in at $3,072 million for the quarter compared to $4,088 million a year earlier. For the year, it was $12,513 million versus $13,670 million in 2024.

Elsewhere in the operating businesses, BNSF railway delivered $1,347 million of fourth-quarter earnings and $5,476 million for the year. Berkshire Hathaway Energy posted $691 million for the quarter and $3,979 million for 2025. The manufacturing, service, and retailing conglomerate contributed $3,370 million in the quarter and $13,647 million for the year.

The company also disclosed that its insurance float—the money it holds from premiums before paying out claims—was about $176 billion at the end of 2025. That's up roughly $5 billion from a year earlier and remains a huge, interest-free source of capital for investments.

So, what's the takeaway? The numbers show a company in transition, with operating profits easing off last year's highs. But the real story isn't in this quarter's earnings dip. It's in the cover letter. For the first time in over half a century, investors aren't reading Warren Buffett's thoughts on value, patience, and American business. They're waiting to hear Greg Abel's. And they're all wondering the same thing: What's he going to do with all that money?